BLACKBURN Rovers were today waiting to hear if their latest offer for Huddersfield's Jonathan Stead has been accepted.

Rovers boss Graeme Souness had an initial bid rejected for Stead yesterday afternoon.

But the Premiership club are thought to have gone back in with a new, improved offer for the Terriers' frontman and the two sides are still 'talking'.

On a busy day of transfer activity at Ewood, Martin Taylor also looks to be heading for Birmingham City.

Rovers accepted an offer from the Blues last night and the player was in the Midlands today to discuss personal terms and undergo a medical.

If Taylor ends up signing for Birmingham then Rovers would net around £1.5 million, the majority of which they would look to reinvest in Stead.

Scouts have been watching the striker for the last 12 months and Souness decided to make his move yesterday after attempts to sign American striker Brian McBride and Everton's Canadian international Tomasz Radzinski were both rebuffed.

The 20-year-old forward is the second leading scorer in the Third Division and although Souness admits it would be a gamble to bring him in, he believes it's a risk worth taking if the price is right.

"We've made Huddersfield an offer and it's up to them whether they take it or not," said Souness.

"We feel that's an area which we need to strengthen and Jonathan is a player we've watched for some time.

"He's 20-years-old, he scores goals, all be it at a lower level, and I believe he could do a job.

"I know people will say there's a question mark about whether he can make the step up but we believe it's worth a gamble."

Stead was thrust into the spotlight last term after progressing through the Terriers Academy set up.

In his debut season, he finished up playing 46 first team games and established himself as a firm fans' favourite by ending the campaign as the club's second top scorer.

That naturally alerted other clubs to his talents and Sunderland lodged a bid of £850,000 last October, which was swiftly thrown out by the Town board.

The Terriers insisted then that they would not accept less than £1m for the prodigious striker, who already has 18 goals to his name this season as Huddersfield look to fight their way out of Division Three.

Sunderland were today reported to be ready to up their inital offer but Rovers would appear to be in pole-position if Town do decide to sell.